At a glance
- are focused on achieving a return above inflation over a 5-year period
- understand the return achieved by the portfolio may be significantly higher or lower than its objective
- understand that the portfolio's asset allocation will change significantly over time, and
- want to manage investment risk by diversifying across asset classes and strategies.
MLC Wholesale: Aims to deliver a return of 3.5% pa above inflation (after management costs), subject to limiting the risk of negative returns over 5 year periods
MLC MasterKey Super Fundamentals: Aims to deliver a return of 3% pa above inflation (after fees and tax), subject to limiting the risk of negative returns over 5 year periods.
This careful risk management approach means there may be times, such as when interest rates are unusually low, when the portfolio requires an extended period to achieve its return objective. In most circumstances the portfolio is expected to provide positive returns over 5 year periods, although there will sometimes be negative returns over shorter periods.
Generating returns above inflation requires the portfolio to invest at least partly in risk assets such as shares. As a result there will be times when the portfolio doesn’t deliver its return objective, and the portfolio may fall in value. However, we aim for the portfolio to have less than a 15% chance of a negative return over a 5 year period. To control the risk of negative returns we flexibly adjust the portfolio’s asset allocation, investing in a combination of assets that provide an attractive potential return for the risk taken.
The measure of inflation is the Consumer Price Index, calculated by the Australian Bureau of Statistics
Minimum suggested time to invest
5 to 7 years